In a new policy paper, the Centre for Development argues that health taxes are a crucial strategy for addressing the complex challenges of our polycrisis era. The paper, released today, highlights the intersection of the COVID-19 pandemic, ongoing conflicts, and escalating economic crises, which together create a multifaceted crisis far exceeding the sum of its parts.
The report underscores the dual benefits of health taxes: they not only help mitigate the burden of non-communicable diseases (NCDs) but also generate essential revenue for underfunded health systems. With NCDs projected to cause 75% of all global deaths by 2030 and the fiscal space for health shrinking due to rising debts and inflation, health taxes emerge as a vital policy tool.
Despite their potential, health taxes remain underutilised. The blog calls for a renewed focus on optimising these taxes to enhance their effectiveness. It highlights that most countries already have an excise tax system in place, making the implementation of health taxes feasible and impactful.
The Centre for Development also announces a forthcoming report from the high-level Task Force on Fiscal Policy for Health, co-chaired by Michael Bloomberg, Larry Summers, and Mia Mottley. This report, expected in September, will offer evidence-based recommendations on advancing health taxes ahead of next year’s UN High-Level Meeting on NCDs.
